The Staples Thesis

Staples Thesis

Staples Thesis - The Daily Concept
Staples Thesis – The Daily Concept

The staples thesis is a theory of export-led growth based on Canadian experience and that explains the development of the Canadian economy as lateral, east-west conception of trade. Scholar Harold Innis believed that Canada developed the way it did due to the nature of its staples economy: raw materials such as cod (in Atlantic Canada), fur (Central Canada), lumber, wheat (Western Canada) and minerals that were exported Britain and the West Indies. This type of trade strengthened Canada’s cultural ties with Britain and led to the creation of institutions that that defined the political environment in the country.

 

For more Daily Concepts check out The Daily Concept App

Get it on Google Play

Three-sector Theory

Three-sector Theory

The Daily Concept free app

Economists Allan Fisher, Colin Clark and Jean Fourastié noticed that a country’s level of economic development is determined by the income generated from its main economic sector.

Countries in an early state of economic development obtain most of their national income from the primary sector (extraction of raw materials).

Countries in a more advanced state of economic development obtain most of their national income from the secondary sector (manufacturing).

Countries with highly developed economies obtain most of their national income from the tertiary sector (services).

 

For more daily concepts check out my app: The Daily Concept

Get it on Google Play